Correlation Between Live Motion and Asseco South
Can any of the company-specific risk be diversified away by investing in both Live Motion and Asseco South at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Live Motion and Asseco South into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Motion Games and Asseco South Eastern, you can compare the effects of market volatilities on Live Motion and Asseco South and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Live Motion with a short position of Asseco South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Motion and Asseco South.
Diversification Opportunities for Live Motion and Asseco South
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Live and Asseco is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Live Motion Games and Asseco South Eastern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asseco South Eastern and Live Motion is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Live Motion Games are associated (or correlated) with Asseco South. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asseco South Eastern has no effect on the direction of Live Motion i.e., Live Motion and Asseco South go up and down completely randomly.
Pair Corralation between Live Motion and Asseco South
Assuming the 90 days trading horizon Live Motion Games is expected to under-perform the Asseco South. In addition to that, Live Motion is 4.01 times more volatile than Asseco South Eastern. It trades about -0.06 of its total potential returns per unit of risk. Asseco South Eastern is currently generating about 0.04 per unit of volatility. If you would invest 4,356 in Asseco South Eastern on August 25, 2024 and sell it today you would earn a total of 614.00 from holding Asseco South Eastern or generate 14.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.77% |
| Values | Daily Returns |
Live Motion Games vs. Asseco South Eastern
Performance |
| Timeline |
| Live Motion Games |
| Asseco South Eastern |
Live Motion and Asseco South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Motion and Asseco South
The main advantage of trading using opposite Live Motion and Asseco South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Motion position performs unexpectedly, Asseco South can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Asseco South will offset losses from the drop in Asseco South's long position.| Live Motion vs. Asseco Business Solutions | Live Motion vs. Detalion Games SA | Live Motion vs. Asseco South Eastern | Live Motion vs. Movie Games SA |
| Asseco South vs. Gaming Factory SA | Asseco South vs. Live Motion Games | Asseco South vs. Ice Code Games | Asseco South vs. Movie Games SA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |